Tax Audit is an independent audit by Chartered accountant in full time Practice considering the matter related to Taxation only and also a report confirming that there is no concealment of income by the Taxpayers and there are also no dues of liability to be paid all dues are paid on time. The Tax Audit is a Compulsory obligation on Taxpayers where the turnover during the previous year is more than the limit prescribed under section 44AB.The due date for filing Tax Audit report is 30th September of the following assessment year. In Case the tax audit return is not filed within the prescribed time then the taxpayer is required to pay penalty of amount of 1.5% of the gross receipts, subject to Maximum 1.5 lac.
> To ensure correctness of and accurate maintenance of books of accounts by means of certification by the chartered Accountant and help in facilating the income tax department to identify the correctness of income.
> To report any error and discrepancies by the auditor after systematic verification of books of accounts.
> To Provide relevant information to the income tax department such as Depreciation allowable under companies act and income tax act, Deduction of tax.
The tax audit report is prepared as per Form 3CA in case when the taxpayer is also required to gets its books of Accounts audited, For instance in case of company every company is required to get its books audited under the companies Act 2013.
Form 3CB is applicable in case of individual and taxpayers who is not required to get its books of accounts audited under any law, like Salaried individual or firms if their income is more than 1 crore. In case of presumptive income the limit is 2 crore.
Form 3CD is an annexure of form 3CA and form 3CB. The tax auditor is required to fill particulars details of the taxpayers for which tax audit was conducted.
|Business||If total sales, turnover or receipts is business for previous year is more than 1 crore.|
|Professional||If total Sales, Receipts in previous year is more than 50 lakhs.|
Presumptive incomes under 44AD,44EE
|If total Sales and receipts is more than 2 crore in case of presumptive income.|
Tax Audit is to be performed by all companies, Individuals who exceeds the prescribed limit as per section 44AB.
The purpose of Tax Audit is to ensure that income disclosed by the taxpayer is true and fair; the picture is given by the audit done by the chartered accountant.
If a person doesn’t get his accounts audited then penalty of 0.5% of gross receipt will be levied maximum of 1.5 lakh.
Due date for filing tax audit is 30th September of next financial year.
Yes if the person exceeds the prescribed limit under section 44AB, then he is required to go audit under income tax act.